Sometimes decisions by insurance companies in one part of the world impact companies elsewhere.
Take the move by Libra Managers to pull out of the Professional Indemnity market. The news struck like a bomb: the insurer, after all, provides cover to 20 of the world’s top 200 law firms, including firms with offices in Africa. The reason: more and higher claims, resulting in losses.
This decision may have a profound impact on international law firms in, for instance, South Africa. Many of them have placed their PI cover in the UK market, with local insurers also relying on the UK and European markets for reinsurance, write Megan Claassens and Ben Rule of Norton Rose Fulbright South Africa.
A hardening PI market in the UK means law firms relying on UK-based PI insurance providers will find it more difficult to get cover, which may create a knock-on effect for cyber and D&O policies, they write: “This puts pressure on local firms as it gives insurers increased bargaining power on which events to cover and what premiums to charge. READ MORE